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Multiple Choice Smith buys and sells equity securities. On December 15, 2021, Smith purchased $519,000 of Jones shares and elected the fair value option to
Multiple Choice Smith buys and sells equity securities. On December 15, 2021, Smith purchased $519,000 of Jones shares and elected the fair value option to account for the Jones Investment. As of December 31, 2021, the Jones shares had a fair value of $605,000. In the 2021 financial statements, Smith will report (Ignore taxes): Investment income of $86,000 in Its Income statement. Accumulated other comprehensive Income of $605,000. An Investment in Jones of $519,000. O Other comprehensive Income of $86,000. 27 On April 1, 2021, BigBen Company acquired 35% of the shares of LittleTick, Inc. BigBen paid $105,000 for the Investment, which is $57,000 more than 35% of the book value of LittleTick's identifiable net assets. BigBen attributed $11,900 of the $57,000 difference to Inventory that will be sold in the remainder of 2021, and the rest to goodwill. LittleTick recognized a total of $17,000 of net income for 2021, and paid total dividends for the year of $10,500; these dividends were issued quarterly. BigBen's Investment In LittleTick will affect BigBen's 2021 net Income by (Round your answer to nearest whole dollar amount): 7:41 Murtiple Choice A loss of $7,438. Earnings of $2,901. Earnings of $4,463. Earnings of $1,562
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